Gold nears 5-month peak as inflation worries boost appeal

Gold nears 5-month peak as inflation worries boost appeal

Gold prices neared the five-month high they touched in the previous session after data showing U.S. consumer prices surged last month triggered a rush for the precious metal seen as a hedge against inflation. Spot gold rose 0.6% to $1,860.18 per ounce by 1422 GMT. U.S. gold futures for December delivery rose 0.9% to $1,865.50. "The market is spooked with yesterday's CPI data coming in as high as it was. Traders are looking at gold as being a safety asset, as a hedge against this inflation risk," said Bob Haberkorn, senior market strategist at RJO Futures. Gold rose as much as 2% on Wednesday and hit its highest level since mid-June after data showed U.S. consumer prices rose at their fastest pace in 31 years, more signs inflation could stay uncomfortably high well into 2022. "The reading that we saw yesterday could be another push back up to $1,900 an ounce for gold," Haberkorn said, adding the market does not believe a rate hike is on the cards right now. Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest. Gold has scaled new peaks over the